Greenhouse gas (GHG) emissions are one of the major causes of rising global warming, and companies from the FMCG sector account for a significant amount of the global emissions. CO2, Methane & NOx gases form a major part of Greenhouse gases released from Fossil Fuels such as gas and oil. Due to rising GHG emissions from companies, it became important among major contributing sectors to report gas emissions during their operations.
Companies from the FMCG sector are under increasing pressure to reduce their carbon footprint. Consumers are becoming more aware of excess carbon dioxide emissions' detrimental environmental effects. Their consumption behavior changes due to this, and they take an active interest in sustainability issues.
GHG emissions are generally classified into Scope 1,2 & 3 emissions. Scope 1 includes direct GHG emissions from stationary fuel combustion and refrigerant gases. Scope 2 encompasses indirect GHG emissions from the on-site generation and purchase of electricity. Scope 3 involves all other indirect GHG emissions in companies’ entire value chain.
Associated British Foods, Unilever, Diageo, British American Tobacco, and Imperial Brands were UK-based major FMCG companies with significant Scope 1 emissions in 2021.
Associated British Foods Plc is a UK-based diversified food processing and retail group with a leading Scope 1 GHG emitter. The food company’s Scope 1 emissions were 2,450 thousand tonnes of CO2 equivalent in 2021, a decline of 12.4% over 2020.
Unilever Plc (Unilever) is one of the largest manufacturers and suppliers of fast-moving consumer goods. Scope 1 emissions by Unilever were 570 thousand tonnes of CO2 equivalent in 2021, a decline of 7% over 2020.
Diageo Plc (Diageo) is an alcoholic beverages company that produces, distributes, markets, and sells spirits, and beer products. Diageo’s Scope 1 emissions were 434 thousand tonnes of CO2 equivalent in 2021.
British American Tobacco and Imperial Brands were among the leading emitters of Scope 1 emissions with emissions of 330 thousand tonnes of CO2 equivalents and 96 thousand tonnes of CO2 equivalents in 2021, respectively.
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